SDRL - Seadrill announces second quarter 2013 results

SDRL - Seadrill announces second quarter 2013 results 
HAMILTON, BERMUDA -- (Marketwired) -- 08/28/13 --  Highlights 
* Seadrill reports its best operating results and net income ever
and     generated second quarter 2013 EBITDA*()) of US$665 million 
* Seadrill reports second quarter 2013 net income of US$1,750
million and     earnings per share of US$3.68 
* Seadrill increases the ordinary quarterly cash dividend by 3
cents to     US$0.91 
* Economic utilization for floaters increased to 94% in Q2 2013
from 92% in Q1     2013 
* Economic utilization for the jack-up fleet in Q2 2013 was 98%,
down from 
99% in Q1 2013 
* Seadrill secured a three-year contract for the newbuild drillship
West     Neptune with a total estimated revenue potential of US$662
million 
* Seadrill realized a gain of US$1,256 million from the sale of the
tender rig     division to SapuraKencana Petroleum for a total
consideration of US$2.9     billion 
* Seadrill completed the sale of the tender rig T-15 to Seadrill
Partners LLC 
(SDLP) for a total consideration of US$210 million 
* Seadrill ordered two jack-ups for a total estimated project price
of US$230 
million per rig, with deliveries in 4Q 2015 and 1Q 2016 
* Seadrill and SapuraKencana joint project secured an eight year
contract for 
three Pipe Laying Support Vessels with a total
estimated revenue potential 
of US$2.7 billion 
* North Atlantic Drilling completes sale and leaseback transaction
for the 
newbuild harsh environment jack-up West Linus for US$600
million 
Subsequent events 
* Seadrill appoints Per Wullf as CEO to take over from Fredrik
Halvorsen 
* Seadrill orders four ultra-deepwater drillships for an estimated
project 
price below US$600 million per rig, with deliveries
scheduled for the second 
half of 2015 
* Seadrill orders two jack-ups for an estimated project price of
US$230     million per rig, with deliveries in the second and third
quarters of 2016, 
respectively 
* Seadrill reaches 50.1% ownership in Sevan Drilling and launches
mandatory 
offer for all outstanding shares which closed on August
22, 2013 
* Seadrill secures a 180 day contract for the newbuild
ultra-deepwater     drillship West Tellus with a total estimated
revenue po
tential of US$150 
million 
* Seadrill secures a 2.5 year contract for the jack-up rig West
Freedom with a     total estimated revenue potential of US$222 million 
* Seadrill secures a one year contract extension with Talisman in
Malaysia for     the jack-up rig West Vigilant at US$167,000 per day 
* North Atlantic Drilling is awarded an extension of the current
drilling     contract, in addition to a new drilling contract for West
Navigator,     securing employment to December 2014 with a total
estimated revenue     potential of US$98 million 
Consolidated financial information 
Second quarter 2013 results 
Consolidated revenues for the second quarter of 2013 were US$1,268
million compared to US$1,265 million in the first quarter of 2013. 
The increase was
despite the sale of the tender rig business, which
operated for only 30 days in the quarter, resulting in a US$100
million revenue decline from 1Q 2013. Overall improvement in fleet
performance more than offset this revenue reduction. 
Operating profit for the quarter was US$507 million compared to
US$552 million
in the preceding quarter.  The decrease is driven by
gain on sale of the West
Janus in the first quarter, offset by lower
operating and SG&A expenses during
the second quarter. 
Net financial and other items for the quarter showed a gain of
US$1,292 million
compared to a loss of US$68 million in the previous
quarter. The gain is primarily related to the sale of the tender rig
business and positive impacts
from interest rate swap movements. 
Income taxes for the second quarter were US$49 million, an increase
of US$5 million from the previous quarter. 
Net income for the quarter was US$1,750 million representing basic
and diluted
earnings per share of US$3.68 and US$3.53, respectively. 
Balance sheet 
As of June 30, 2013, total assets were US$21,801 million, an increase
of US$595
million compared to March 31, 2013. 
Total current assets increased to US$2,978 million from US$2,350
million over
the course of the quarter, primarily driven by an
increase in marketable securities and other current assets, offset by
a decrease in amounts due from
related party and the sale of the
tender rig business. 
Total non-current assets increased to US$18,823
million from US$18,856 million primarily due to yard payments on the
West Auriga, West Vela, T-16, and West Mira, offset by the sale of
the tender rig business. 
Total current liabilities decreased to US$4,397 million from US$4,782
million
largely due to decreases in short term debt to related party
and liabilities
associated with sale the tender rig business, offset
by an increase in the current portion of long-term debt. 
Long-term interest bearing debt increased to US$8,521 million from
US$7,883 million over the course of the quarter and total net interest
bearing debt decreased to US$11,186 million from US$11,674 million. 
The decrease is primarily due to repayments of related party debt. 
Total equity increased to US$7,840 million from US$6,530 million as
of June 30, 2013. The increase is primarily driven by net income for
the quarter, offset
by dividends paid. 
Cash flow 
As of June 30, 2013, cash and cash equivalents were US$437 million,
an increase
of US$109 million compared to the previous quarter. 
Net cash from operating activities for the six month period ended
June 30, 2013
was US$671 million and net cash used in investing
activities for the same period
was US$444 million.  Net cash used in
financing activities was US$108 million. 
This information is subject of the disclosure requirements pursuant
to section
5-12 of the Norwegian Securities Trading Act. 
Fleet Status 2Q: http://hugin.info/135817/R/1725250/575268.pdf 
Seadrill 2Q 2013: http://hugin.info/135817/R/1725250/575267.pdf 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: Seadrill Limited via Thomson Reuters ONE 
[HUG#1725250] 
Media contact
Rune Magnus Lundetrae
Chief Financial Officer
Seadrill Management Ltd.
+44 (0) 7766 071010